Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: March 26, 2025

Purpose:

Content: The Executive Mayor and Cabinet RESOLVED to;   2.1 to note the General Fund revenue budget outturn is forecast to overspend at financial year end by £35.4m at Period 9 before non-recurrent mitigations. This reduces to £5.5m after the forecast utilisation of £51m capitalisation directions (£13m more than the budgeted £38m), utilisation of the £5.0m risk contingency budget and utilisation of £13.0m corporate earmarked reserves and £3.9m business risk earmarked reserve.   2.2 to note that all service directorates have been asked to reduce their net expenditure so that the annual budget can be balanced at the end of the year through the in-year Financial Recovery Plan as set out from paragraph 4.9.   2.3 to note the unfunded Local Government cost pressures that have emerged nationally, regionally and locally relating to increases in demand and market prices which need to be addressed by Government changes to policy and/or funding levels.   2.4 to note the progress in Medium Term Financial Strategy (MTFS) savings achievement of £21.9m (79.1%) against the total savings target of £27.7m as set out in paragraph 4.152.   2.5 to note the work that is continuing on the Council’s Transformation Programme as set out from paragraph 4.147.   2.6 to note the Housing Revenue Account (HRA) revenue budget outturn is forecast to overspend by £8.0m.   2.7 to note the General Fund capital programme 2024-25 forecast overspend of £10.1m against the revised capital budget of £137.4m, owing to the forecast usage of £13m extra capitalisation directions to support the revenue forecast position.   2.8 to note the HRA capital programme 2024-25 forecast breakeven position against the revised capital budget of £68.3m.   2.9 to note the Council’s historic borrowing and subsequent debt burden and national, regional and local service pressures continue to be critical to the non sustainability of the Council’s revenue budget as set out from para 4.172. Dialogue with MHCLG continues around options of further financial support from Government to ensure the Council can deliver sustainable Local Government services.   2.10 to note that the Council continues to operate Spend Control Panels, and tightened the criteria from July 2024, to ensure that stringent financial control and assurance oversight are maintained.   2.11 to note that current forecasts are based on the best available information at the time and will be subject to review and change during the financial year.